Investigating Alleged Irregular Investments and Inefficiencies in the Government Service Insurance System (GSIS)
Recently, measures have been taken to address the alleged irregular investments and inefficiencies of the Government Service Insurance System (GSIS). House Resolutions 1705 and 1706 were filed by the Makabayan Bloc at the House of Representatives, urging the committees on government enterprises and privatization and civil service and professional regulation to investigate possible violations of laws, rules, and regulations within the GSIS. The purpose of these investigations is to shed light on the risks faced by government employees and to lower the usurious interests and penalties imposed on them.
The Makabayan Bloc’s Call for Investigation
The members of the Makabayan Bloc, including ACT Teachers Rep. France Castro, Gabriela Party-list Rep. Arlene Brosas, and Kabataan Party-list Rep. Raoul Danniel Manuel, have expressed concerns about the GSIS’s interest rates and penalties. They argue that these policies have led to a drastic reduction in the benefits received by government employees.
In a statement, Rep. Castro emphasized the need for the GSIS to revise its policies that impose usurious interests and penalties on loans. She believes that these practices are detrimental to the financial well-being of its members.
Issues with Loan Payments and Delinquencies
House Resolution 1706 highlighted specific cases, such as that of Clarita Aclado, a teacher who took out a loan from the GSIS. Despite allowing the government insurer to deduct her monthly loan payments from her payroll, Aclado still incurred penalties and delinquencies due to alleged late payments and defaults.
The resolution points out that the usurious interest rates and penalties imposed by the GSIS on its members’ loans are eroding their retirement benefits. This is a common issue faced by many public school teachers and other government employees. Furthermore, the GSIS fails to inform its members about their delinquencies and the interest and penalties being imposed on their unpaid balances.
Concerns about Irregular Investments
House Resolution 1705 draws attention to the Commission on Audit’s (COA) audit observation memorandum, which revealed that the GSIS invested a total of P2.308 billion in the stocks of Alternergy Holdings Corp., SP New Energy Corp., and Bank of Commerce.
The COA noted that these stocks have not demonstrated a proven track record of profitability over the last three years, nor have they paid dividends at least once during that period. This contravenes Section 36 (h) of Republic Act No. 8291, which exposes the significant amount of members’ contributions to high risk and raises concerns about the actuarial solvency of the fund.
Rep. Castro argues that these irregular investments may further jeopardize the contributions of government employees, exposing them to higher risks. She stresses the importance of investigating these investments to ensure transparency and accountability within the GSIS. The ultimate goal is to safeguard the pension funds of government employees and protect them from inefficient and potentially corrupt practices.
Conclusion
The filing of House Resolutions 1705 and 1706 by the Makabayan Bloc reflects the concerns surrounding the alleged irregular investments and inefficiencies within the GSIS. By calling for investigations into these matters, the bloc aims to shed light on the risks faced by government employees and to address the usurious interests and penalties imposed on their loans. Furthermore, the bloc highlights the need for transparency and accountability in the GSIS’s dealings, particularly concerning its investments. Ultimately, the goal is to safeguard the pension funds of government employees and protect them from any potential financial harm caused by inefficient or corrupt practices.
Source: The Manila Times
